Q) What else should people think about?
“Once we’ve sorted the overall goal and level of risk, we talk to our clients about whether or not they want to pay for a portfolio manager – someone who really knows the ins and outs of financial markets who they can talk to on a regular basis.
“Just as important is how much they want their portfolio to be tailored to their specific needs. Are there any areas they simply won’t invest in for ethical reasons? Are there certain markets they want to over-play or under-play depending on their wider circumstances? For example, if they’ve already invested in a lot of property, they may not need us to invest in it on their behalf.
“Once that’s all thought through, it’s time to talk about the more technical aspects of how the investment is structured – the channels through which they invest. It could involve using an ISA, a pension or an offshore bond, for example. There are a variety of different ways to set up a portfolio and each one has its own implications. A big part of what we do is to walk our clients through that.”
Q) What options are available when it comes to managing your own investment?
“You can have pretty much anything, from no contact with your investment house at all, to constant involvement in your portfolio. But the greater the contact, and the greater the tailoring, the greater the cost.
“At Coutts we have investment products for those who want to be closely involved in every decision made. Those clients work closely with an investment manager here to shape a portfolio precisely tailored to their needs.
“But we also have products which involve buying an ‘off-the-shelf’ portfolio or multi-asset fund that is managed day-to-day by a team of experts who pick investments based on their knowledge of individual companies and sectors.
“And then there’s our online option, where you spend a few minutes setting up your investment and check on progress whenever you want, but have no involvement beyond that. Our investment managers decide on the broad asset classes or countries to invest in, but they don’t spend time searching for individual investments, and the charges involved are therefore lower.”
Find out more about investing at Coutts. And if you’re a Coutts client who would like to discuss our investment options in more detail, please speak to your private banker.
There are other types of investments you may want to consider as well – private equity, property and passion assets for example.
When investing, past performance should not be taken as a guide to future performance. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.